The Glazers have $1.6B in debt

Meet the Glazers.

They are the proud owners of the English soccer club, Manchester United, and the NFL’s Tampa Bay Buccaneers.

At present time, they are in a wee bit of debt.

$1.6 billion dollars to be exact.

The BBC said its investigation found the Glazer family’s debts are $570 million greater than previously known. Malcolm Glazer and his sons also own the Tampa Bay Buccaneers.

All the extra debt comes after the Glazers borrowed extensively against their shopping mall business in the United States. The extent of the debt could fuel a further revolt by a group of United fans who oppose the Glazers’ ownership.

The Glazers took over United in 2005 in a leveraged buyout worth $1.4 billion.

The BBC said it saw mortgage documents showing the Glazers have borrowed $570 million against shopping malls owned by their company First Allied Corporation. That’s in addition to $1 billion in debts tied to Manchester United and $95 million to the Buccaneers. (via ESPN)

Ouch.  Regardless of who you are, or what business you are in, $1.6B isn’t exactly pocket change.  Regardless of whether or not the Glazers are able to pay off or manage debts that large, fans everywhere should probably be a little concerned about the financial viability of their team(s).  That’s why Buccaneers management decided to dole out a heavy dosage of “assurances” to their fans,

“Buccaneers fans should know that the Glazer family is as financially well-positioned as ever before. Companies they own generate revenues in excess of $800 million each year,” Jonathan Grella, the team’s director of communications, said in the statement.

“This franchise remains committed to bringing the resources to build its next championship team.”

Of course, Buccaneers fans and followers may find those statements to be a little disenchanting.  First off, the fact that the statement used to reassure fans deals only with revenue and not profit?  That doesn’t instill confidence.  Furthermore, last year, a University of Florida game pulled more fans, the Bucs were in constant danger of a blackout, and the team finished 3-13, a far cry from a championship-caliber squad.

To many Bucs fans, it seems as if their team has been left on the back burner ever since the Glazers took over control of Man U.  A fact so apparent that even Man U fans worry that the Glazer’s ownership will lead their team to mirror the Tampa Bay football team.  Of course, the fact that Man U has more than 10 times the debt of the Buccaneers seems to at least partially speak to the “back burner effect”, as well.

Or maybe this is a setup and the Glazer’s have everybody right where they want them.

…or maybe not.

Tags: Football, Glazers, Malcolm Glazer, Manchester United, Soccer, Tampa Bay Buccaneers

Category: Football